Bill > HR7555

This bill, titled the "Audit the Pentagon Act of 2026," aims to ensure the Department of Defense (DoD) achieves a clean audit opinion on its financial statements, meaning an auditor has found no significant issues with how the DoD accounts for its money. The bill highlights that the Pentagon has failed its audits for eight consecutive years, with hundreds of billions of dollars unaccounted for in the past. It expresses Congress's sentiment that defense budget cuts should not harm essential programs like wounded warrior accounts or body armor for deployed troops, and that the valuation of older assets should be simplified without compromising auditing standards, while also ensuring financial accountability for classified programs. Crucially, if the DoD fails to achieve an unqualified audit opinion (meaning a clean or unmodified report) in any fiscal year after 2025, specific spending reductions will be imposed: a 0.5 percent cut in the first year of failure and a 1.0 percent cut in subsequent years, with these reduced funds going towards deficit reduction. These cuts would apply proportionally to programs within the affected department or agency, though certain accounts like military personnel and the Defense Health Program are excluded. The President can waive these reductions if they would negatively impact national security or deployed service members, but must provide a detailed report to Congress explaining the waiver.

Military Affairs and Security

https://www.congress.gov/bill/119th-congress/house-bill/7555/all-info